In your view, what policy line must be adopted by the new government which takes charge in India to contain the worsening economic indicators?
India is facing a tough and tight election with the two leading political parties trying hard to entice the populace of India to bring them to power. There is more noise and less substance as the most important and sensitive economic issues which demand urgent attention have been pushed to the backseat. Indian economic growth story is losing its sheen and the government has turned a blind eye to the glaring economic indicators.
- The fall in the retail sales of the motor vehicles which contracted to a dismal figure of 8 percent in April is an evident signal of weakening consumer demand. The fact stands reiterated by the slowdown in momentum in sales of many other consumer goods.
- Tough time awaits the incoming government due to the worsening geopolitical climate in West Asia and the Middle East as US noose tightens on Iran. Also, the effects of the US-China Trade War cannot be ignored in the long
- Domestic food prices have also shown an upward trend as the rate of wholesale food inflation has shot up for the fourth month in a row to reach the figure of 7.37 percent.
The new government will not be able to move with the same laxity in attitude and will have to take bold and urgent steps to lift the waning public sentiment. India needs to see some big policy moves upfront to lift its spirits like the encouragement of investment and healthy competition. It will have to invest time in enhancing the export competitiveness in the wake of growing volatility on the international front.